Updated return after issue of notice u/s 142

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You can generally file an updated return even after receiving a notice under Section 142(1) of the Income Tax Act, as long as the assessment for that year hasn't been completed or isn't pending. If the notice is only for document production and assessment proceedings haven't begun, filing an updated return is usually permitted. It's advisable to gather the requested documents, make a full disclosure in your updated return, pay any additional tax and interest, and file promptly to potentially reduce penalties.

S KUMAR

S KUMAR (Querist)
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08 September 2025 Whether Updated return can be filed after receipt of notice u/s 142 (1). Since assessee filed ROI without disclosing capital gain for the Asst. Year 2024-25. Assessee ready to pay tax and file updated return. Meantime assessee received notice u/s 142 (1) request to produce bank statement and other supporting documents. Updated return can be filed to avoid penalty

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 September 2025 The law allows filing an updated return even after receiving a notice u/s 142(1), provided the assessment for that year is not yet completed or pending.
If the Assessing Officer has only issued a notice under Section 142(1) requesting additional documents, and has not initiated assessment, reassessment, re-computation, or revision proceedings, the assessee is typically still eligible to file an updated return.
Once assessment, reassessment, or revision proceedings for the concerned year are pending or completed, an updated return cannot be filed for that year.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 September 2025 After receiving a 142(1) notice, the assessee should collect the requested documents, such as bank statements and supporting evidence, and prepare a full disclosure in the updated return, including previously omitted capital gains.
Filing the updated return promptly, along with payment of any additional taxes and applicable interest/penalties, can help to mitigate future penalties for concealment and demonstrate compliance.
Filing the updated return does not automatically waive penalties, but timely compliance can potentially reduce further penalty exposure and scrutiny.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 September 2025 Good Luck..

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